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Crescent Point Cuts Capex, Curtails Production 15%

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   |    Monday,April 20,2020

Crescent Point Energy provided an update to its 2020 operating program

KEY HIGHLIGHTS

  • Lowering 2020 capital expenditures guidance by $75 million, or 10 percent, with no associated impact to production.
  • Enhancing sustainability by reducing 2020 operating expenses by $140 million.
  • Reduced salaries for executive team and Board of Directors.
  • Lowering annual production guidance by 15 percent, primarily due to the voluntary shut-in of higher cost production.
  • Retains significant liquidity of over $2.5 billion, with no material near-term debt maturities.

Revised Capex 2020

Crescent Point’s capital expenditures for 2020 are now forecast to be approximately $650 to $700 million, or $75 million below its recently revised guidance of $700 to $800 million, based on the mid-point of the range.

Revised Production 2020

The Company’s annual average production is now forecast to be 110,000 to 114,000 boe/d for 2020. This represents a reduction of 20,000 boe/d, or approximately 15 percent, from Crescent Point’s prior annual average guidance of 130,000 to 134,000 boe/d, based on the mid-point of the range. This revision is largely due to the shut-in of higher cost production, as well as the Company’s decision to shift capital to the latter part of the year with flexibility to further reduce capital, if necessary.

Shut-in

In aggregate, Crescent Point is voluntarily shutting-in approximately 25,000 boe/d of its current production, of which approximately 70 percent is oil.

Executive Pay Cut

Reduced salaries for executive team and Board of Directors.

 

Areas of Operations


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